Web3 Explained: The Internet’s Big Shift in Simple Terms
By Ancel Cott | Updated: 18/06/2025
Image Credits: Respective Owner
Imagine using the internet where you own your data, earn rewards for your actions, and don't rely on tech giants like Google, Meta, or Amazon to access services. That's the promise of Web3—a smarter, more secure, and more personal version of the internet that's built on blockchain technology.
But what is Web3 exactly? And why is it such a big deal? Let's break it down, step-by-step.
What Is Web3?
Web3 (short for “Web 3.0”) is the next generation of the internet—a shift from a centralized model to a
decentralized one.- Web1 (the 1990s) was the “read-only” internet—basic websites and limited interaction.
- Web2 (2000s–now) is the “read and write” internet—social media, apps, streaming platforms, etc.
- Web3 is the “read, write, and own” internet—where users have control over their identities, money, and data.
The key difference? Web3 is powered by blockchain, the technology behind cryptocurrencies like Bitcoin and Ethereum.
Core Features of Web3 (Made Simple)
1. Decentralization
Web3 doesn't rely on centralized servers (like Facebook or Google). Instead, data is stored across thousands of computers globally usingblockchains.
Example: Instead of a single bank holding your money, you use a digital wallet that you alone control.
2. Digital Ownership
Every user owns their data, digital identity, and even virtual assets (like NFTs or tokens) without needing permission from big tech companies.
Example: You buy a virtual land in a metaverse game, and it's yours. No one can delete it.
3. Crypto Payments
Web3 uses cryptocurrencies (like Ethereum or USDT) for buying, selling, or earning. These work without banks—just your digital wallet and internet.
Example: You do freelance work for a client in the U.S. and get paid in crypto within minutes, no bank needed.
4. Smart Contracts
These are programs that automatically execute actions (like sending payments) when conditions are met—without human involvement.
Example: Rent a digital space and pay instantly via smart contract. If you don't pay, access is blocked automatically.
5. DAOs (Decentralized Autonomous Organizations)
Think of these as online communities that run like companies—but without CEOs. Instead, decisions are made by votes from token holders.
Example: A group of users vote on what new feature should be built on a Web3 platform.
Is Web3 Safe?
Yes—and no. Web3 gives you more control, but also more responsibility.- No passwords to forget (you use seed phrases or keys)
- No middlemen (which means fewer fees)
- But you must protect your wallet and keys—if you lose them, you lose access
Rule #1 of Web3: You are your own bank.
Real Examples of Web3 in Action
- Metamask – A wallet to access Web3 apps
- Uniswap – A decentralized exchange to trade crypto
- OpenSea – A marketplace for NFTs
- Decentraland / The Sandbox – Virtual worlds built on blockchain
- Lens Protocol – A social media platform where users own their content
Why Should We Care?
Web3 isn't just a trend. It's a shift in how the internet works—giving power back to users.
- No more gatekeepers
- You control your identity
- You earn from your time and data
- The world is becoming borderless and faster
If you've ever felt uncomfortable giving away your personal data or relying on one app for everything, Web3 is your opportunity to take back control.
